The Resilient Growth of Romford’s Private Rented Sector with a Decade of Opportunities Amid Challenges
As Romford strides into the future, the burgeoning private rented sector has continued to house many of its residents.
The decade-spanning 2011 to 2021 saw a significant surge in the private rented sector, a testament to the enduring appeal and viability of the Romford property market. This growth has unfolded amidst a backdrop of housing challenges, underscoring the pivotal role of private landlords in bridging the housing gap.
In 2011, 13.3% of homes in Romford were in the private rented sector, and in 2021 it had risen to 19.2%.
That means 1 in 5.2 Romford homes are in the private rented sector.
A glance at the housing trajectory reveals a stark reality: the public sector, notably local councils, has been markedly lagging in meeting the housing demand. Over the last two decades, the UK has witnessed a notable shortfall in council house construction (an average of 1,630 for the whole UK per year (that's not a typo!)), compared to 144,910 per year in the private sector.
That is particularly interesting when we look at the averages for the 1950s, 60s and 70s when, on average, 160,570 council houses were built per year compared to 147,960 private sector homes per year.
The shortfall in council housing has inadvertently propelled the private rented sector to the forefront, making it an indispensable player in Romford’s housing market.
This growth has been a beacon of hope for many; for Romford landlords, it's a realm of investment with promising returns, while for Romford tenants, it avails the crucial roof over their heads in a market where buying a home remains a distant dream for many.
Landlords have found a fertile ground in Romford to nurture their investment portfolios. The romford has demonstrated resilience. Although some landlords have chosen to exit the market recently, the demand for rental properties remained robust. The persistent demand underscores the inherent value proposition that Romford holds for both seasoned and aspiring landlords.
However, the blossoming of the Romford private rented sector has its shades of concern.
For tenants, the dream of homeownership is further away as Romford house prices have continued to soar over the last few years (although they have eased recently), making the rental market the only viable option for many.
It doesn’t help Romford tenants that rents in Romford have risen by 20% since 2016.
Although renting offers flexibility and fewer responsibilities compared to homeownership, the desire for a place to call one’s own is a sentiment that resonates deeply among many Romford tenants.
Amidst the unfolding narrative, we are conscientious letting agents deeply attuned to the market dynamics and the needs of both landlords and tenants. Our expertise in the Romford property market has enabled us to cultivate a harmonious landlord-tenant ecosystem that is not only financially rewarding for landlords but also empathetic to the housing needs of tenants.
The comparative analysis, enriched by statistics, paints a favourable picture of Romford’s private rented sector growth, making it a compelling choice for existing and potential landlords.
The journey of a landlord is one laden with both promise and challenges. The landscape of buy-to-let investments is ever-evolving, and navigating it requires a blend of market insight, foresight, and a trusted partner who understands the local terrain.
As we look ahead, the horizons are promising for those keen on exploring the opportunities nestled within Romford’s private rented sector.
We invite existing landlords and those nurturing the idea of delving into the Romford rental market to engage with us. Our doors are always open for insightful discussions about making informed investment decisions in a market ripe with potential.
The narrative of the past decade is a telling compass of the potential returns ahead. Being a landlord is a long-term commitment and should not be influenced by short-term market fluctuations. For many landlords, the initial investment is not only about quick returns but also about long-term benefits, such as property appreciation and consistent rental income. Even with rising mortgage rates, the increasing rental demand suggests rents could surge by around 20% to 25% in the coming four or five years, a potential benefit for landlords.
Moreover, long-term appreciation can offer significant returns when it comes to selling properties, especially considering the leveraged nature of property investments. Even in challenging times, holding onto properties aligns with the foundational reasons many entered the buy-to-let market. Romford landlords play a crucial societal role, filling the gap left by insufficient social/council housing.
In essence, while entering the Romford buy-to-let market might be daunting now, those already invested should think carefully before exiting.
In Romford, the private rented sector is more than just a market; it’s a community where every landlord’s investment catalyses the broader social good, and every tenant’s satisfaction is a badge of honour we wear with pride.
Your journey in the Romford rental market is not just a business venture; it's a voyage of impact, and we are here to ensure it's rewarding.